The Liverpool supporters died at Sheffield Wednesday's Hillsborough stadium on April 15 1989, where their team were to meet Nottingham Forest in an FA Cup semi-final.

The High Court ruled that it was ''necessary, desirable and in the interests of justice'' that a fresh inquest should be held.

A new police investigation into the disaster has also been announced.

Mr Lansley made the announcement on funding during questions on future Commons business.

His comments came after shadow Commons leader Angela Eagle had warned the families would ''have to meet expensive legal costs to ensure they are adequately represented at the new inquests''.

The Government has also pledged to effectively waive VAT on a charity single -a a version of the Hollies' hit He Ain't Heavy, He's My Brother by The Justice Collective – aimed at helping meet the legal costs.